Sunday, January 20, 2008

Death Wish

Malaysian shares ended lower Friday as the market succumbed to the negative cue from Wall Street's fall overnight and profit-taking pressure ahead of the weekend amid continued concerns over the state of the U.S. economy. The weighted Composite Index of 100 blue chip stocks fell 1.5% to 1439.49, off an intraday low of 1423.83. Trading activity was subdued at 900 million shares compared with 1.2 billion Thursday. Decliners beat gainers 605 to 199. The losses in U.S. markets hit sentiment and prompted investors to continue taking profits from the market's rally to a record high earlier this month. However, it's still too early to say that the longer-term uptrend is over. The optimism that the Malaysian economy can withstand pressures from a U.S. recession because of greater domestic demand remains intact. Expectations the government may call for early general elections also lent support to the market. Prime Minister Abdullah Ahmad Badawi announced Thursday that the supreme council of the governing National Front will meet Jan. 21, a move considered by analysts as another sign he is preparing to call early elections, likely in March. Market direction next week will be heavily dependent on the performance of the U.S. and regional markets. Support is seen at 1400, and resistance at 1470. Plantation stocks, which were among the best performers in the first half of January, were among the leading decliners Friday as investors took profit in the sector.

Technically, due for a rebound. Cut Loss level RM1.10


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